Varmahlíð is a small centre of services for the rural community, is located by Ring Road No. 1, helping it to serve a great number of tourists per year. Also, Varmahlíð offers an excellent school, swimming pool, and Skagafjörður's largest community centre, Miðgarður. Skagafjörður is known for horses, river-rafting and island-sailings. There is a centre for river-rafting at Varmahlíð.